613 Discount on the bonds payable 37,387 Bonds payable 600,000 B. Jul. 1 Bond interest expense 28131 Discount on bonds payable 1131 Cash 27,000 C. Dec.31 Bond interest expense 28187 Discount on bonds payable 1,187 Bonds interest payable 27,000 10-3A A. Cash 600,000 Bonds payable 600,000 B. Dec.31 bond interest Exp. 27,000 Bond interest payable 27
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Spring 2015 FNAN 401 - HW #1 (Due Feb 12) 1. You are saving for retirement. You have decided that one year from today you will begin investing 10 percent of your annual salary in a mutual fund which is expected to earn a return of 12 percent per year (compounded quarterly). Your present salary is $30,000, and you expect that it will grow by 4 percent per annum throughout your career (consequently, your investment at time 1 will be $3,000, your investment at time 2 will be $3,120, etc
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corporate bonds with a 30-year maturity. The bonds have a coupon rate of 10.125%, pay interest semiannually, and have a par value of $1,000 per bond. The bonds are currently trading at a price of $879.625 per bond. A 25-year Treasury bond with a 6.825% coupon rate (paid semiannually) and $1,000 par is currently selling for $975.42. Part 2: Case Analysis 1) Determine the yield spread between the corporate bond and the Treasury bond. If you are considering the investment in Shaffer’s bonds (that
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TBP 4322 Definition of financial system A financial system can be defined at the global, regional or firm specific level. The firm's financial system is the set of implemented procedures that track the financial activities of the company. On a regional scale, the financial system is the system that enables lenders and borrowers to exchange funds. The global financial system is basically a broader regional system that encompasses all financial institutions, borrowers and lenders within the global
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1. [Treasury Bonds, Notes & Bills: 24 Points] a. (2 points) From your Barron’s, find a Treasury bill maturing in three months from the date of your Barron’s in 2015. For example, if the date of your Barron’s is February 15 (October 1, 2015), then choose a Treasury bill maturing around May 15 (January 1, 2016). * Find a Treasury bond or note maturing one year from the date of your Barron’s in 2015. For example, if the date of your Barron’s is February 15, 2015, then choose a Treasury
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1) What is the annual interest expense Brussels Inc. will have to pay in cash each year with a market rate of 6%? With a market rate of 20% 6% = $120,000. 20% = $400,000 2) Calculate the cash proceeds of the bond sale if the market rate is 6%. Show your work. Yearly Semi-annually Coupon Rate 8% Market Rate 6% 3% N 5 10 PV Annuity (Interest) Interest: Semi-annual interest payments * PV Factor $80,000*8.53020 $ 682,416 PV Single Sum (Principal) Principal:
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obvious. While one can make estimates for the risks and include them as suggested, it is clear that the Eurobond option exposes the firm to higher economic/political and exchange rate risks. It also requires that funds be repatriated to pay off the bonds, while with the bank
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复旦大学管理学院院 投资学期末考试试卷 样品 课程名称：__投资学 _________ 课程代码： MANA130029.01____________ 开课院系：__管理学院财务金融系____ 考试形式：闭卷 姓 名： 学 号： 专 业： |题 号 |1 |2 |3 |4 |5 |总 分 | |得 分 | | | | | | | (以下为试卷正文) 一、选择题 （60分）Multiple choices （60 point, one point each） 1. 资本配置线可以描述为 A) 投资机会集由一个无风险资产和一个风险资产构成 B) 投资机会集由两个风险资产构成 C) 上面每个点对某个投资者来说效用都一样
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My portfolio in elementary algebra Submitted By: Valenzuela city science high school Submitted to: Mr.timothy a. acana Linear equations in two variables Forms for 2D linear equations Linear equations can be rewritten using the laws of elementary algebra into several different forms. These equations are often referred to as the "equations of the straight line." In what follows, x, y, t, and θ are variables; other letters represent constants (fixed numbers). General form where A and B are
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Pedersen 2 Interest-Rate Sensitivity First order effect: Bond prices and yields are negatively related Maturity matters: Prices of long-term bonds are more sensitive to interest-rate changes than short-term bonds Convexity: An increase in a bond’s YTM results in a smaller price decline than the price gain associated with a decrease of equal magnitude in the YTM. Prof. Lasse H. Pedersen 3 Duration The duration (D) of a bond with cashflows c(t) is defined as minus the elasticity of
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